Sources must be cited in APA format Your response should be

Sources must be cited in APA format. Your response should be four (4) double-spaced pages; refer to the \"Assignment Format\" page located on the Course Home page for specific format requirements.

Part A: You were recently promoted to a sales manager position for ABC Company, which offers customized software for physicians, dentists, and veterinarians. Unfortunately, you are now the sales manager for one of your company’s least productive regions. After several weeks on the job, you become concerned about the high rate of turnover. Three salespeople have resigned within the last two months. Replacements are needed and there is little time to hire, train, and deploy them in the field.

Upon further review of the situation, you discover that two of the salespeople resigned because they felt the sales organization was structured unfairly. They had been assigned to geographical areas that were difficult, and their sales quotas were not adjusted accordingly.

You know quite well that replacing a sales person can be costly. In fact, the cost to the company can be as high as $300,000 per bad hire because time and money are lost in the process of recruiting, hiring, training, missed sales, bad relationships, and firing. Before you begin your search, you want to be certain that you have a well thought-out organizational plan and that you attract the right people for these positions.

To help you prepare your hiring plan, answer the following questions.

   •   Describe two (2) reasons why it is important for firms to organize their sales activities into a specific structure.

   •   Describe one (1) disadvantage of the current structure. Describe one (1) advantage and one (1) disadvantage of a geographical sales structure.

   •   Which sales structure do you recommend and why? Provide two (2) supporting facts.

( Good Luck, you got this. )

Solution

Reasons why it is important for firms to organize their sales activities into a specific structure

The importance of organizing the sales activities in a specific structure lies in adapting the sales effort to the strategy of the organization, therefore, the structure meets the strategic needs of the organization.

Disadvantage of the current structure

The heterogeneity of potential customers in each territory, in this case it appears that they are not randomly distributed but geographically segmented, therefore, certain areas are potentially less able to meet the targets than others and this impacts the motivation of the sellers.

Advantage and Disadvantage of the Geographical Structure

An advantage is sales force know their territories and build appropriate strategies to this area.

A very worthy disadvantage to take into consideration is the fact that the sales strategies to a suburban community differ from an urban city area or a rural town.

Which sales structure do you recommend and why? Provide two (2) supporting facts

Whatever structure chosen be geographical-based, product-based, client-based and cooperation approach always there are overlapping situations. 1) Sometimes, might be profitable to bring the best sales talent together to a territory or to merchandising a particular product. For that I recommend a mixed structure, to adapt the salespeople to punctual circumstances. 2) Even if you give everyone financial incentives to work together collaboratively to avoid creating divides and wounds in your sales force.